What Is the Florida Homestead Exemption?

Short answer

The Florida homestead exemption reduces the taxable value of your primary residence: $25,000 off the assessed value for all property taxes, plus an additional exemption of up to $25,000 on assessed value above $50,000 that applies to all levies except school district taxes (Florida Statutes 196.031, as of October 2026). It also starts the Save Our Homes cap that limits future assessment increases. You apply once with the county property appraiser after you move in.

Definition

The homestead exemption is a Florida property tax benefit for owners who make the home their permanent residence as of January 1. It lowers the taxable value and triggers the annual assessment cap; it is not automatic and must be applied for.

Worked example

A Westchester home assessed at $450,000. Without homestead, taxable value is $450,000 for every levy. With homestead: the first $25,000 exemption applies to everything, so the school taxable value is $450,000 - $25,000 = $425,000. The additional exemption of up to $25,000 applies to non-school levies, so the non-school taxable value is $450,000 - $50,000 = $400,000. If the school millage is 0.7% and the non-school millage is 1.2% (illustrative rates), tax without homestead = $450,000 x 1.9% = $8,550; with homestead = ($425,000 x 0.7%) + ($400,000 x 1.2%) = $2,975 + $4,800 = $7,775, a first-year savings of $775. The bigger savings come from the cap in later years.

Who qualifies and how to apply

• You must own the home and live in it as your permanent residence on January 1 of the tax year.
• Apply with the county property appraiser (online in Miami-Dade and Broward) by March 1; bring your Florida driver license, vehicle registration and voter ID or declaration of domicile at the new address.
• Only one homestead per family unit; you cannot claim a residency-based exemption elsewhere.
• The additional $25,000 exemption amount is adjusted annually for inflation by statute (Florida Statutes 196.031(1)(b)).

Homestead and your mortgage

Lenders estimate taxes without the exemption for the first year because it is not in place at closing. Once granted, your escrow analysis the following year should drop. See Save Our Homes cap for how the exemption limits future increases, and PITI for how taxes flow into your payment.

In South Florida

In Miami-Dade and Broward, the homestead exemption matters most because of the cap it starts: your assessed value can rise no more than 3% a year (or the CPI change if lower) while you keep the homestead, even if market values jump. Buyers should budget the first full year of taxes on the purchase price, since the seller's capped bill disappears at sale. File with the Miami-Dade or Broward property appraiser by March 1 of the year after you move in. Investment properties, second homes and condotels do not qualify, which is one reason their tax bills run higher.